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What is incidental charges?

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0 2022-05-05T18:50:36+00:00
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Hey,

I go on business trips at least twice a month and let me tell you that incidental expenses are insignificant expenses related to business travel. These expenses include unnecessary entertainment and travel cost that a person might take during a business tour. Now you know about the incidental charges meaning.

Some examples of incidental expenses that may be/are paid through cash are:

  • Room service and baggage handler tips

  • Phone bills

  • Meals

  • Transportation

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 Steps to Pay, Track, and Reimburse Incidental Expenses

  • The procedure and policy related to the incidental expenses are mentioned in the employee handbook of an organisation:

  • The incidental costs categorised as business or personal are limited in quantity, quality, and rupee amount. Anything above the set amount is required to be paid by the employee herself/himself

  • According to the company procedure, the reimbursement of the incidental expenses might require you to pay the expenses yourself or by the company’s card

  • It’s important to track these expenses for tax and accounting purposes

  • You are required to keep a record of all the purchases and payments

  • You are required to sum up the history in the expense logbook of the company along with the supporting bill or receipt and submit it to the company

Now you know what is incidental charges.

Incidental Expenses in Real Estate

When you take a property on rent, there are many expenses that are over and above the base rent of the space, such as common area costs, maintenance, utilities, property tax,  insurance, and even repairs sometimes. These are known as incidental expenses.

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Read more:

How to calculate HRA exemption?

What is the maximum limit for HRA?

I hope now you have a complete understanding of incidental charges meaning.

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